Total Cost of Buying Property in Spain: Taxes, Fees, and Ongoing Expenses Explained

Buying property in Spain continues to attract international buyers seeking lifestyle benefits, relocation options, or long-term ownership opportunities. In recent years, interest has grown steadily among buyers from Lithuania, Poland, and the wider Baltic region, including Latvia and Estonia.

While advertised property prices in Spain may appear attractive compared to some Northern and Eastern European markets, the total cost of buying property in Spain is higher than the headline price. Taxes, professional fees, and recurring ownership costs all need to be factored in from the outset. This article explains these costs clearly and practically, helping international buyers plan with greater confidence. Figures are indicative and may vary by region and individual circumstances.

Understanding the Total Cost Structure

Property costs in Spain fall into two main categories:

• One-off purchase costs, paid during the buying process
• Ongoing annual expenses, payable for as long as you own the property

Both are equally important when assessing affordability, particularly for buyers purchasing from abroad.

How Much Extra Should Buyers Budget?

As a general guideline, international buyers should expect to budget an additional 10% to 15% of the purchase price on top of the property value. The final percentage depends on:

• Whether the property is new build or resale
• The autonomous region where the property is located
• The purchase price and financing structure

Buyers from Lithuania, Poland, and the Baltic countries are often accustomed to different tax structures, making this upfront clarification especially important.

Property Purchase Taxes in Spain

Taxes represent the largest additional cost when buying property in Spain. The type of tax depends on whether the property is newly built or previously owned.

Resale Properties: Transfer Tax (ITP)

For resale properties, buyers pay Impuesto sobre Transmisiones Patrimoniales (ITP). This tax is set at regional level and typically ranges between 6% and 10% of the declared purchase price.

ITP is paid by the buyer shortly after completion. The applicable rate depends on the region where the property is located, not the buyer’s country of origin.

New-Build Properties: VAT and Stamp Duty

When purchasing a new build property from a developer:

• VAT (IVA) is usually charged at 10%
• Stamp Duty (AJD) generally ranges from 1% to 2%, depending on the region

These taxes replace ITP and are paid at completion.

Notary Fees

Notary fees are regulated by law and depend mainly on the purchase price and complexity of the transaction. For most residential purchases, buyers should expect costs ranging from several hundred euros to around €1,000.

Land Registry Fees

After completion, the property must be registered in the Land Registry. Registry fees are also regulated and usually fall within a similar range to notary fees.

Legal Fees

Many international buyers, particularly those purchasing from Lithuania, Poland, and the Baltic region, choose to appoint an independent lawyer due to language and legal differences.

Legal fees vary but are commonly structured as:

• A fixed fee, or
• Around 1% of the purchase price, plus VAT

Lawyers typically manage legal checks, contract review, tax payments, and registration on the buyer’s behalf.

Mortgage-Related Costs (If Applicable)

If financing is required, additional costs may apply, including:

• Property valuation fees
• Bank arrangement or opening fees (if charged)
• Mortgage deed notary and registry costs

Spanish mortgage conditions can differ significantly from those in Poland or the Baltic states, making early clarification essential.

Other One-Off Costs to Consider

Depending on how the purchase is handled, buyers may also encounter:

• Power of attorney fees for remote purchases
• Certified translations of documents
• Administrative or gestor fees

Individually, these costs are modest, but collectively they should be included in the overall budget.

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Ongoing Annual Property Costs in Spain

Beyond the purchase, property ownership in Spain involves recurring expenses that international buyers should understand clearly.

Local Property Tax (IBI)

IBI is an annual municipal tax based on the cadastral value of the property. The amount varies by municipality and property type but is generally considered moderate compared to some Northern European markets.

Community Fees

If the property is part of a shared building or residential complex, owners pay community fees to cover maintenance of common areas, lifts, gardens, and shared services.

Fees vary widely depending on facilities and location.

Utilities, Maintenance, and Insurance

Ongoing costs also include:

• Electricity, water, and gas
• Internet and television services
• Routine maintenance and repairs
• Home insurance

Costs depend on property size, usage, and whether the home is occupied year-round or seasonally.

Non-Resident Property Tax

Non-resident owners may be subject to non-resident property tax, even if the property is not rented. This applies to many international buyers from Lithuania, Poland, and the Baltic countries who do not become Spanish tax residents.

Common Budgeting Mistakes International Buyers Make

Some frequent cost-related issues include:

• Focusing only on the purchase price
• Overlooking regional tax differences
• Underestimating ongoing annual costs
• Assuming Spanish costs mirror those in their home country

Clear, location-specific budgeting helps avoid these pitfalls.

Key Questions Buyers Should Ask

Before proceeding, international buyers may find it useful to ask:

• What are the total purchase costs for this specific property?
• Which taxes apply in this region?
• What are the estimated annual ownership expenses?
• Are there any outstanding community fees or local taxes?

Conclusion

The total cost of buying property in Spain extends well beyond the advertised price. Taxes, professional fees, and ongoing ownership expenses all contribute to the true cost of ownership.

For international buyers from Lithuania, Poland, and the Baltic countries, understanding these costs in advance is essential for realistic planning and smoother transactions. With clear expectations and careful preparation, buyers can approach the Spanish property market with confidence and clarity.

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